The company that manufactures Apple's iPhones will soon be delving in the auto industry as it recently inked a joint venture with Fiat Chrysler Automobiles (FCA). Apparently, the electronics company plans to make a formal agreement with the automaker in Q1 of 2020.

According to a report by Bloomberg, Hon Hai Precision Industry Co. (also known as Foxconn Technology Group), wants to diversify from its role of just building electronic devices such as the iPhone, Macbook, and the Sony Playstation. With its expertise in making electronic components, and managing supply chain, they believe that they will be able to make the necessary parts needed for electric vehicles.

However, the electronics manufacturer will not be making / assembling electric cars per se. Instead, Hon Hai will be responsible for design, components, and supply chain management. “The company will not get into car assembly” said company Chairman Young Liu in a text message to Bloomberg. In fact, Tesla CEO Elon Musk shared in 2014 that Hon Hai was supplying components to the company. This shows that despite their lack of automotive knowledge, the electronics company is no stranger when it comes to making complex electronic machines.

There is no word yet as to what car (or cars) the electronics maker will help in making or developing. But with automobiles becoming more digitized and dependent on electronics, FCA will have a powerful ally when it comes to making electronic parts and maybe making electric cars. Perhaps Hon Hai might even play a key role in the development and release of the rumored Fiat 500e, the supposed electric version of the hatchback.

With nothing set in stone yet, it will be quite intriguing to see an electronics manufacturer try their hand in the automotive business. They may not exactly be 'building' cars in the future, but the fact that want to diversify from making electronic devices means they could be planning for something in the next few years.